According to a new airport retailing market report published by Allied Market Research titled, “Airport Retailing Market by Product Type, Airport Size, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2021–2027,”
The global airport retailing market is growing rapidly since last few years owing to the increase in inclination of people toward travelling and exploring unique holiday destinations. The growth of the market is further driven by upsurge in disposable income and improvement in living standard of living. Increase in the number of high net worth individual (HNIs) in emerging markets further propels the growth of the market. The global airport retailing market size was valued at $27,552.8 million in 2019, and is expected grow at a CAGR of 12.6% during 2021–2027 to reach 40,592.8 million in 2027
The airport retailing market trends are majorly attributed to rise in middle-class population in countries such as China, India, Brazil, Japan, Australia, and Thailand. As per the recent statistics, Asia-Pacific millionaires now control more wealth than their peers in North America. In terms of future spending options, travel has been recognized as the top priority with greater focus on unique luxury experiences and adventure activities. Surge in interest of people to explore new places and to have unique travel experiences have encouraged market players to offer food & beverage products and regional liquor flavors that connect travelers to local culture of the destination and explore the unknown acquaintance of the place and its people. However, changing socio-economic conditions threatens the growth of the market. Market players are coming up with new specialized limited edition products for travel retail categories, which cater to the need of the travelers.
For the purpose of airport retailing market analysis, the market is segmented on the basis of product type, airport size, distribution channel, and region. Depending on product type, the market is divided into liquor & tobacco, perfumes & cosmetics, fashion & accessories, food & beverages, and others. In 2019, the perfumes & cosmetic segment held around 38% share of the global airport retailing market, and is expected to continue this trend during the forecast period. This is attributed to increase in interest of people to explore new fragrances and products in the perfumes & cosmetic industry. By airport size, the market is segregated into large airport, medium airport, and small airport. The medium airport segment is estimated to grow at the fastest rate. Growth Expansion of the retail businesses on the medium airports is mainly majorly driven by the increasing increase in spending capacity of the middle middle-income groups, this is the major reason for the highest CAGR of the medium size airports, and this will offer prominent airport retailing market opportunities during the forecast time period. By distribution channel, it is categorized into direct retailer, convenience store, specialty retailer, and departmental store.
The specialty retailer segment was the largest revenue contributor to the market in 2019, and is estimated to reach $15,098.4 million by 2027, registering a CAGR of 13.2% from 2021 to 2027.
Region-wise, Asia-Pacific is expected to grow at the fastest rate in the airport retailing market, registering a CAGR of 13.7% during the forecast period. LAMEA is anticipated to exhibit the second highest growth rate, owing to the presence of developing economies in the region.
Rise in travelling & shopping aspirations of young and rich millennial is expected to majorly foster the market growth in the Asia-Pacificregion. Baby boomer and generation X are the major contributors in the Asia-Pacific airport retailing market.
Key Findings Of The Study
- The liquor & tobacco segment is expected to grow at a CAGR of 12.0% during the forecast period.
- The perfumes & cosmetics segment is anticipated to dominate the airport retailing market growth, registering a CAGR of 13.7%
- The large airport segment is projected to garner the highest airport retailing market share of around 57% by 2027, registering a CAGR of 12.5%.
- The specialty retailer segment is anticipated to dominate the global airport retailing market with a CAGR of 13.2%.
- The direct retailer segment is estimated to grow at a CAGR of 13.8% during the forecast period.
The global market is fragmented with the presence of several market participants across various regions such as Airport Retail Group LLC, Dubai Duty Free, Dufry AG, DFS Group Ltd, King Power International, The Shilla Duty Free, China Duty Free Group Co., Ltd, Gebr. Heinemann SE & Co. KG, Japan Airport Terminal Co., Ltd, and Flemingo International.